India, Sept. 5 -- The State Bank of India (SBI) will have to bear daily compensation liability to compensate for losing a borrower's original property papers. The Bombay High Court has directed the state-owned lender to pay a Mahim-based firm Rs.5,000 per day from December 1, 2023, until it hands over certified copies of title documents that were lost while in its custody.

The court also ordered SBI to reconstruct the documents, saying the bank cannot shift responsibility to a borrower for not immediately asking for their return. The order came on a petition filed by M/s In Vogue Creations, a Mahim-based partnership firm that had taken a loan from SBI's Dadar commercial branch in 1979.

As security for the loan, the firm had submitted th...